Barclays Plans to Trim IB Workforce by More Than 200 to Reduce Costs

Barclays PLC BCS intends to reduce 3% of its workforce in the investment banking (IB) division in the upcoming days. This is part of CEO C.S. Venkatakrishnan’s plan to boost the division’s profitability. This was reported by Bloomberg, citing people familiar with the matter.Details of Barclays’ Job Cut PlanMore than 200 employees in IB, global markets and research will likely be affected. These would also include managing directors, among the most senior roles. These job cuts aim to expand the bank’s capability to invest in priority areas, one of the people familiar with the matter stated. Barclays has been focused on gaining market share in European rates, equity derivatives and securitized product trading. During its investor update last year, the company stated that these efforts are anticipated to boost revenues by £500 million by 2026.In IB, the company is aiming to grow its revenues from equity capital markets and mergers and acquisitions, with a specific focus on the health care, industrial, technology, and energy transition sectors.While it is prioritizing growth in other areas, Barclays remains committed to its transatlantic IB model, despite ongoing investor pressure over the years.A Barclays spokesperson stated, “Like other banks, we regularly assess our talent pool as part of our routine operations to ensure ongoing investment in key focus areas.”Rationale Behind Barclays’ MoveThis move aligns with Barclays’ ongoing efforts to improve efficiency through streamlining business operations and focusing on core businesses.In April 2025, it announced a collaboration with Brookfield Asset Management Ltd. to transform its payment acceptance business. Further, in February 2025, it divested its Germany-based consumer finance business. In November 2024, the company acquired Tesco’s retail banking business and changed its operating divisions effective in the first quarter of 2024.Over the past six months, Barclays shares have gained 36.3% compared with the industry’s growth of 23.1%.Image Source: Zacks Investment ResearchCurrently, BCS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Streamlining Efforts by Other Global BanksLast week, a source familiar with the matter said that Citigroup C will cut about 3,500 jobs at two of its technology centers in China by the start of the fourth quarter of 2025. The reduction will take place at the China Citi Solution Centres in Shanghai and Dalian.Most of the jobs that are being cut are full-time. Citigroup mentioned that some of the roles would be moved to its technology centers elsewhere without specifying the number of jobs or locations.The move is part of the bank’s strategy to simplify and reduce its global technology operations to improve data management.Similarly, after shutting its retail banking business in the United States in 2021, HSBC Holdings PLC HSBC is now set to close its business banking division in the country. This announcement comes amid the company’s ongoing business simplification efforts and accelerated shift toward the Asia and Middle East regions. This was first reported by Reuters.This move will likely affect nearly 4,500 HSBC clients. The bank will aid the impacted clients in transitioning to a suitable alternative provider and will continue to serve some clients in the Mid-Market and Global Network Banking Business.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report Barclays PLC (BCS): Free Stock Analysis Report HSBC Holdings plc (HSBC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks